12,080.85-45.05
Stock Analysis, IPO, Mutual Funds, Bonds & More

Stark difference between probable & actual proceeds of crime attached by ED gets Sanjay Singal bail

The Court has recorded the stark difference between the probable proceeds of crime and the actual proceeds of crime attached by the Enforcement Directorate (ED).

, ET Bureau|
Last Updated: Jan 24, 2020, 08.58 PM IST
0Comments
Sanjay Singal
Granting bail to Singal, the Court said “though, there may not be any financial loss in strict sense, but for this dubious device followed by the company, they would face the consequence at the end of the trial”.
Tax Calculator
Less than a month after he was denied bail, a local Court Friday granted bail to Sanjay Singal, former Chairman of Bhushan Power & Steel Ltd’s (BPSL),

The Court has recorded the stark difference between the probable proceeds of crime and the actual proceeds of crime attached by the Enforcement Directorate (ED).

“When the first bail application was dismissed, there was possibility that the investigation may result in proceeds of crime to the extent of Rs 27,704 crores. At that time the submission made was that the total loan amount defaulted by M/s BPSL was Rs 47,204 crores and the offer by M/s JSW Steels was Rs 19500 crores giving apprehension that the proceeds of crime was Rs 27,704”, the order reads.

The Court recorded “Now the ED has restricted the proceeds of crime to Rs 4229 crores (appox). Though, this amount of proceeds of crime is far far less than the initial apprehension of proceeds of crime being Rs 27,704 crores but even this amount is not a small amount”.

The order further reads “the trial is not going to end soon. This is one favourable factor in favour of the accused (Singal)”.

Singal's defence counsel Vijay Aggarwal pointed out that “as against the funds of Rs.2348 crores taken out from the company, it (company) has reinvested Rs.3330.09 crores which shows the bonafides of Singal”.

Granting bail to Singal, the Court said “though, there may not be any financial loss in strict sense, but for this dubious device followed by the company, they would face the consequence at the end of the trial”.

Advocate Nitesh Rana, Special public prosecutor for ED opposed the bail arguing “Singal is the mastermind and the main beneficiary of the offence and was in the helms of affairs. He is first among equals”.

Rana submitted that “for economic offences, jail and not bail is the rule”. He added that it is a case of “circular transaction”.

Defence counsel Vijay Aggarwal referred to the report prepared by Interim Resolution Professional Mahender Kumar Khandelwal opining that the assets of the company are not less than 41000 crores.

The order reads “It is to be noted that the company had become defaulter in paying the interest w.e.f 2015 and the balance is accumulation of interest”. Aggarwal added that when the down payment is made, the assets get depressed offers and that is the reason the offer given by M/s JSW Steel is Rs 19,500 crores. “This shows that there is no siphoning of funds of the kind as was apprehended at the time of decision of first application for bail”, the order reads.

The Judge further held “the common case of the parties is that for improving debt equity ratio, the company has resorted to taking the money of the company and routing back through various channels as equity of the accused and his family members so that they continue to get financial support of the banks. The submission is made to show that money was not swindled by the accused, but was re­routed in the company for the larger interest of the company itself”.

The order adds “although the character of the funds of the company changed from the assets of the company to the equity of shareholders, nevertheless, the sum result is that the funds have been pooled in the company and not taken away”.

Also Read

Venkataramanan appears before ED in AirAsia probe

RBI appoints ED Janak Raj as member of MPC

ED summons PFI Chairman & six others

Panasonic enters ed-tech, launches two apps

ED takes custody of Amrapali directors for questioning

Comments
Add Your Comments
Commenting feature is disabled in your country/region.

Other useful Links


Copyright © 2020 Bennett, Coleman & Co. Ltd. All rights reserved. For reprint rights: Times Syndication Service